Reports suggest that the number of private renters in the UK has doubled over the last 20 years, making buy-to-let properties a very lucrative investment both for those looking to expand their existing portfolio and those planning to get a foot on the property ladder for the first time. However, choosing a conveyancer for buy-to-let transactions is equally as critical a task – if not more so – than choosing a conveyancer for a residential transaction. That’s because buy-to-let purchases come with their own unique set of challenges which create a slightly different conveyancing process requiring a specialist level of expertise.
Finding a Buy-to-Let Conveyancer
When purchasing an investment property, it is absolutely vital that you do your research and find a conveyancer who is experienced and qualified to handle the additional complexities of buy-to-let conveyancing. Some of the additional actions and measures that will need to be taken above and beyond that of standard conveyancing include:
- Property restrictions: Even if you’ve found the perfect property, you won’t be able to buy-to-let if there are restrictions relating to the use of the building. For example, many leasehold property contracts include clauses that prohibit rentals. Buy-to-let conveyancers will check that there are no such limitations.
- Wider issues: When looking for a buy-to-let conveyancer, it is best to choose a conveyancing solicitor rather than a licensed conveyancer. Conveyancing solicitors have a broad legal training which allows them to manage wider issues relating to buy-to-lets, such as tax and environmental implications.
- Buy-to-let mortgages: Specialist conveyancers can check that you have been approved for a buy-to-let mortgage, enabling you to rent to tenants. These are different to residential mortgages and are often calculated by property rent potential.
- Additional documents: A buy-to-let conveyancing solicitor will be able to handle any additional documentation that you may need drawn up. This could include tenancy agreements, or a buy-to-let deed of trust if you’re purchasing the property with another investor and want to protect your share of the income.
How Much Does Buy-to-Let Conveyancing Cost?
The good news for investors is that the core cost of buy-to-let conveyancing usually isn’t all that different to the cost of residential conveyancing, often falling between £850 and £1500 on average. However, there may be additional fees on top of this to cover necessary searches, taxes, and administration fees as charged by any third parties who may be involved.
Building Your Portfolio
While the fundamental aspects of buy-to-let conveyancing are the same as residential conveyancing – both involve the handling of contracts, transfer of deposit, arrangement of surveys, and communication with the Land Registry, for example – there are additional considerations needed when dealing with a buy-to-let property.
If you’re planning to invest in property, it’s worth seeking out a conveyancing solicitor experienced in buy-to-let conveyancing, such as Movus. With vast experience in this particular and highly niche area of property law, our process helps you to build your portfolio securely, tackling potential issues before they arise and ensuring you’re renting your new investment property in line with local buy-to-let legislation across the UK.